As India approaches the Union Budget 2024-25, the healthcare sector stands at a pivotal crossroads, poised for transformative changes that promise to enhance public health initiatives and improve healthcare infrastructure. The budget’s implications for healthcare accessibility and affordability, especially for rural and underserved populations, are critical as the nation strives to bridge the urban-rural healthcare divide. This story explores the perspectives of industry leaders on the potential impacts of the upcoming budget on India’s healthcare landscape.

Aryaman Tandon, Managing Partner, Healthcare, Praxis Global Alliance emphasizes the need for a substantial rise in the overall healthcare budget. He asserts more funds are anticipated for public health programs, focusing on infectious diseases, and maternal and child health. The need for a substantial rise in the overall healthcare budget, expecting a ~2% increase from ₹89,115 Cr in FY24 to ₹90,658 Cr in FY25. “This increased allocation is essential for improving infrastructure, accessibility, and quality,” The rural healthcare infrastructure under PM-ABHIM is expected to see a significant ~95% increase, from ₹2,100 Cr in FY24 to ₹4,108 Cr in FY25, aimed at developing primary and community health centres and upgrading existing facilities with advanced equipment.

A ~4% increase in funding for Ayushman Bharat (PMJAY), from ₹7,200 Cr in FY24 to ₹7,500 Cr in FY25, is on the horizon. Tandon notes, “Wider coverage and the inclusion of more beneficiaries are crucial, especially for economically weaker sections.” This move aims to alleviate the financial burden of healthcare expenses on the underserved population.

The budget is anticipated to double the funding for biotechnology research from ₹500 Cr in FY24 to ₹1,100 Cr in FY25. “Encouragement of innovation through grants and subsidies for startups and research institutions is necessary,” Tandon points out. This increased funding will focus on indigenous solutions and promote advancements in medical research.

An allocation of ₹6,200 Cr for the PLI scheme in FY25 across 14 sectors, including pharmaceuticals and medical devices, is expected to reduce import dependency. “Streamlining the regulatory framework for faster approval and availability of new drugs and devices is imperative,” Tandon notes.

Similarly, Dr. Sujit Paul, Group CEO – Zota Healthcare Ltd. echoes these sentiments, highlighting the importance of promotive and preventive health measures. “The newly-elected governments should prioritize promotive and preventive health measures, as well as sanitation under the Swachh Bharat mission,” he states. Dr. Paul emphasizes the need for a comprehensive agenda aimed at transforming the healthcare sector. “Increasing government spending on healthcare is essential to achieve universal health coverage and effectively address pressing issues. Expanding the Ayushman Bharat scheme and implementing revised schedules for quality drug production and the pharma marketing code should be top priorities.”

Dr. Raj Nagarkar, MD & Chief of Surgical Oncology & Robotic Services, HCG Manavata Cancer Centre (HCGMCC), emphasizes the necessity for a substantial increase in the overall healthcare budget. “With an aging population and a rise in chronic diseases such as cancer, increased healthcare spending is crucial. Aging individuals require advanced care and modern facilities, while chronic diseases need ongoing treatment and specialized programs. Increased funding will enable hospital expansion, state-of-the-art equipment, and preventive initiatives.” The need for advanced medical infrastructure and continuous care for chronic conditions calls for a significant boost in healthcare expenditure.

Bridging the urban-rural healthcare divide is a priority for Dr. Nagarkar. “Rural areas often lack access to advanced medical facilities and specialized care. By improving rural healthcare, we can ensure that residents receive timely, quality medical services. This includes investing in rural clinics, telemedicine, mobile health units, and training programs for rural healthcare workers.” Strengthening rural healthcare infrastructure is vital to reduce disparities and improve health outcomes for rural populations.

Abhay Agarwal, Founder and CEO, Clinics on Cloud, underscores the importance of a holistic approach to healthcare that includes prevention, diagnostics, treatment, and medical device manufacturing. “As we approach the budget, it’s crucial to take a holistic approach to healthcare that encompasses prevention, diagnostics, treatment, and medical device manufacturing. Upgrading Primary Health Centers (PHCs) with Health ATMs, kiosks, and lounges will enhance last-mile connectivity and real-time disease surveillance, leading to better-informed budget allocations.”

“Expanding free diagnostics nationwide and increasing insurance coverage under Ayushman Bharat can significantly reduce out-of-pocket expenses and improve access to care. Investing in medical device manufacturing will reduce our dependency on imports and lower treatment costs. Additionally, digitizing health records and expanding the reach of generic medicine stores will make healthcare more accessible and affordable. Embracing public-private partnerships will drive the next wave of transformation in our healthcare infrastructure.”

Similarly, Deepshikha Sharma, CEO of Sharp Sight Eye Hospitals highlights the need for strategic investments in infrastructure, digital integration, and mental health support. “As India prepares for the Union Budget 2024-25, the healthcare sector is poised at a crucial juncture, with an urgent need for strategic investments to cater to its burgeoning demands. The focus is distinctly on three pivotal areas: infrastructure enhancement, digital integration, and comprehensive mental health support. Expanding healthcare infrastructure is paramount.

Our goal should be to ensure that every citizen has access to quality healthcare, irrespective of their geographic location. This means building more hospitals and health centers in rural and suburban areas to bridge the urban-rural healthcare divide. This move will make healthcare more accessible and affordable, helping to alleviate the strain on existing urban centers and making a significant difference in the lives of millions.”

Dr. Harshit Jain, Founder and Global CEO of Doceree points out the budget’s potential to spur growth and innovation in the pharmaceutical sector. “Budget 2024 is a moment for the pharmaceutical sector in India. We look forward to robust support toward R&D and innovation through higher fiscal incentives and reduced GST on critical inputs to spur growth, foster technological advancement, and further fortify India’s leadership in global healthcare.”

The Union Budget 2024-25 presents a unique opportunity to revolutionize India’s healthcare sector. By addressing key areas such as increased allocation, infrastructure development, universal health coverage, medical education, digital health initiatives, and more, the budget aims to create a healthier and more resilient India. The insights from various healthcare experts highlight the critical need for strategic investments and comprehensive initiatives to ensure equitable, accessible, and high-quality healthcare for all. As the nation anticipates the budget, the focus remains on building a robust healthcare system that meets the needs of every citizen.